Bangkok--15 May--KTC
It proceeded with the policy on receivables quality control.
KTC showed the performance in the first three months of 2009. The total revenue was 3,114 million Baht, 7% increment from the same quarter of last year. The net profit was 101 million Baht which was close to that of last quarter. The total member base consisted of 2.15 million accounts with the total receivables of 47,136 million Baht. The company was confident that it had sufficient financial liquidity for business operation and payment of the due loans although the shareholders had the resolution not to approve the increase in capital because the capital increasing plan was only the preparation for future growth. The company is now putting emphasis on receivables quality control and organization of the marketing activities that alleviate everyday spending burden of the consumers.
Mr. Niwatt Chittalarn, President & Chief Executive Officer of “KTC” or Krungthai Card Public Company Limited, said “The world financial crisis impose serious impact on the economic expansion in all regions including Thai economy, causing the domestic demand to decrease. The consumer finance business is therefore directly affected because unemployment is increasing plus people become hesitant and decide to cut down on their spending. KTC realizes the seriousness of the situation that can affect the quality of receivables portfolio. We analyze and assess the situation at all times and adjust the business policy with the emphasis on the entire process of portfolio risk management. We also render the card approval procedure to be more rigorous and analyze economic factors and the ability of the customers to pay off debts in order to maintain portfolio quality.”
“Furthermore, although the capital increasing plan aiming to prepare for future growth did not receive approval from the shareholders, the company still possesses strong financial liquidity for business operation and the ability of pay off both due short-term and long-term debts. For the 1st quarter of 2009, the overall performance of the company did not differ from that of the last quarter. It had the net profit of 101 million Baht, which was close to that of the 2nd — 4th quarters of 2008 at 101 million Baht, 103 million Baht and 100 million Baht, respectively. For the 1st quarter of 2008, the net profit was 217 million Baht, which included the extraordinary income the company obtained from VISA.”
“Regarding the financial performance as of 31 March 2009, the company had the total asset of 49,244 million Baht, which decreased from 51,899 million Baht on 31 December 2008. The net receivables was equal to 47,136 million Baht, which decreased from 48,661 million Baht at the end of 2008 because consumers lost confidence in the economic situation and the future income and therefore became more careful in their spending and avoided creating more debts. These caused the portfolio value to decrease. The total membership base of 2.15 million accounts consisted of 1,622,049 credit cards. The net credit card receivables was 34,631 million Baht. “KTC CASH” personal loans were equal to 529,890 accounts. The net receivables of KTC CASH personal loans was 11,566 million Baht and the net receivables of “KTC Million” self-employed loans was 521 million Baht.”
“In the 1st quarter of 2009, the company had the total revenue of 3,114 million Baht, 7% increment from that of the same period of 2008, which was equal to 2,912 million Baht. The interest income including credit usage and fee income of this quarter were equal to 2,204 million Baht, 11% increment from the same period of 2008 or slight decrement of 3% from the last quarter of 2008. This was the result of the total receivables dropping down from the end of the last year. For the 1st quarter of 2009, Cost to Income Ratio was equal to 42% which decreased down from 49% at the end of 2008. This was the result of significant decrease in marketing expenditure.”
“For the 1st quarter of 2009, eventhough KTC had reduced its borrowing due to the decrease in the receivables portfolio, the increment of borrowing interest rate made the cost of fund rising up slightly from 4.57% at the end of 2008 to 4.76%. This caused the net interest margin of the company to decrease slightly from 13.74% to 13.64%.”
“KTC is still capable of generating revenue continuously and will stand side by side with the consumers to assist in alleviating everyday financial burden. We still push forth the strategy of value adding through the usage of KTC Forever Rewards that can be exchanged faster and in a greater variety in order to maintain long-term customers. Moreover, we will focus on effectively managing the quality of the existing receivables portfolio.” Mr. Niwatt concluded his remarks.
For more information: Public and Corporate Affairs Department
Krungthai Card Public Company Limited
Kandtharat Chermchitphong Tel. 0-2828-5057
Suchada Weerasakulrak Tel. 0-2828-5732
Fax.0-2828-5046
Email: [email protected]